[Ord. 323, 12/9/1976, § 1; as reenacted and amended
by Ord. 348, 1/4/1982]
This ordinance shall be known as the "Business Privilege Tax
and Mercantile Tax Ordinance."
[Ord. 323, 12/9/1976, § 2; as reenacted and amended
by Ord. 348, 1/4/1982]
The following words and phrases, when used in this ordinance
shall have the meanings ascribed to them in this Section, except where
the context clearly indicates a different meaning.
1. Business — any activity carried on or exercised for gain or
profit in the Borough of Fountain Hill including, but not limited
to, the sale of merchandise or other tangible personalty or the performance
of services. As to those taxpayers having their principle place of
business within the Borough of Fountain Hill, business shall include
all activities carried on within the Borough of Fountain Hill as well
as those carried on outside of the Borough of Fountain Hill. As to
those taxpayers which do not have a place of business within the Borough
of Fountain Hill there shall be included only those activities carried
on within the Borough of Fountain Hill. As to those taxpayers having
a place of business other than their principle one, within the Borough
of Fountain Hill, business shall include all activities carried on
within the Borough of Fountain Hill and those carried on outside the
Borough of Fountain Hill attributed to the place of business within
the Borough.
2. Borough shall mean the Borough of Fountain Hill.
3. License year — "License Year" shall be the calendar year.
4. Person — any individual, partnership, limited partnership,
association, firm, or corporation. Whenever used in any clause prescribing
or imposing a penalty, the term "person" as applied to associations
shall mean the partners or members thereof, and as applied to corporations,
the officers thereof.
5. Taxpayer — "Taxpayer" shall mean a person subject to the payment
of the tax imposed by this ordinance.
6. Tax year — "Tax Year" shall be the calendar year.
7. Tax collector — shall mean the Tax Collector of the Borough
of Fountain Hill.
[Ord. 323, 12/9/1976, § 3; as reenacted and amended
by Ord. 348, 1/4/1982]
There is hereby levied for the tax year 1977 and annually thereafter
a tax for general revenue purposes on the privilege of doing business
as herein defined in the Borough of Fountain Hill, as follows:
1. Rate and Basis of Tax — the rate of tax on every dollar of
the whole or gross volume of business transacted within the territorial
limits of the Borough of Fountain Hill shall be calculated as follows:
A. On receipts attributable to the performance of services the rate
shall be 1 1/2 mills or $1.50 per $1,000 of gross volume of business.
B. On receipts attributable to wholesale sales of merchandise the rate
shall be one mill or $1 per $1,000 of gross volume of business.
C. On receipts attributable to retail sales of merchandise the rate
shall be 1 1/2 mills or $1.50 per $1,000 of gross volume of business.
2. Computation of Volume of Business.
A. Every person subject to the payment of the tax hereby imposed who
has commenced his business prior to the full calendar year prior to
the tax year shall compute his annual estimated gross volume of business
upon the actual gross amount of business transacted by him during
said immediately preceding calendar year.
B. Every person subject to the payment of the tax hereby imposed who
has commenced or who commences his business before the beginning of
the tax year but after the beginning of the full calendar year prior
to the tax year, shall compute his estimated annual gross volume of
business for the tax year upon the gross volume of business transacted
by him during prior calendar year, taking the monthly average during
said period and multiplying the same by 12. In the event that he shall
be in business fewer than 90 days in the prior calendar year, he shall
be permitted to use sufficient days in calendar year in which the
tax year begins to equal 90 successive days after commencement of
business, to take a monthly average thereon, and to multiply the average
by 12.
C. Every person subject to the payment of the tax hereby imposed who
has commenced or commences his business subsequent to the beginning
of the tax year, if there shall be less than three months from the
commencement of his business to the end of the tax year shall compute
his annual gross volume of business upon the actual gross amount of
business transacted by him during the tax year; if there shall be
more than three months from the commencement of his business to the
end of the tax year he shall compute his estimated gross volume of
business transacted by him during the period from the commencement
of his business to the end of the tax year, taking the monthly average
during the first three months of business and multiplying the same
by the number of months from the commencement of business to the end
of the tax year.
D. Every person subject to the payment of the tax hereby imposed who
engages in a business temporary, seasonal or itinerant by nature,
shall compute his estimated gross amount of business to be transacted
by him for the period said person engages in such temporary, seasonal
or itinerant business within the Borough by a method to be determined
by the Tax Collector.
E. The Tax Collector is hereby authorized to accept payment under protest
of the amount of business privilege tax claimed by the Borough in
any case where the taxpayer disputes the validity or amount of the
Borough's claim for tax. If it is thereafter judicially determined
by a court of competent jurisdiction that the Borough has been overpaid,
the amount of the overpayment shall be refunded to the taxpayer. The
provisions of this Section shall be applicable to cases in which the
facts are similar to those in a case litigated in a court of competent
jurisdiction.
3. Persons, Business and Receipt Exempted.
A. Persons and Businesses — persons employed for a wage or salary,
nonprofit corporations, organized for religious, charitable or educational
purposes, agencies of the Government of the United States or of the
Commonwealth of Pennsylvania and the business of any political subdivision,
or of any authority created or organized under and pursuant to any
act of assembly are exempt from the provisions of this ordinance.
B. No such tax shall be assessed and collected on a privilege, transaction,
subject, or occupation which is subject to a state tax or license
fee, and which tax or license fee has been held by the Courts of Pennsylvania
to be the basis for exemption from the imposition of a business privilege
or mercantile tax by a municipality.
C. Utilities — no such tax shall be assessed and collected on
the gross receipts from utility service are fixed and regulated by
the Pennsylvania Public Utility Commission; or on any public utility
service rendered by any such person or company or on any privilege
or transaction involving the rendering of any such public utility
service.
D. State Tax on Tangible Property — no such tax shall be assessed
and collected on the privilege of employing such tangible property
as is subject to a State tax except on sales of admission to places
of amusement or on sales or other transfers of title or possession
of property.
E. Production and Manufacture — no such tax shall be assessed
and collected on goods, articles, and products, or on by-products
of manufacture, or on minerals, timber, natural resources, and farm
products, manufactured, produced, or grown in the Borough of Fountain
Hill, or on the preparation or processing thereof for use or market,
or on any privilege, act or transaction related to the business of
manufacturing, the production, preparation or processing of minerals,
timber and natural resources or farm products, by manufacturers, by
producers, and by farmers with respect to the goods, articles and
products of their own manufacturer, production or growth, or any privilege,
act or transaction relating to the business of processing by-products
of manufacturer, or on the transportation loading, unloading or dumping
or storage of such goods, articles, products or by-products.
4. Determination of Gross or Whole Volume of Business — gross
or whole volume of business upon which the tax hereunder is computed
shall include the gross consideration credited or received for or
on account of sales made and/or services rendered, subject only to
the following allowable deductions and exemptions.
A. The dollar volume of business transacted by wholesale and retail
dealers, derived from the resale of goods, wares, and merchandise
taken by any dealer as trade-in or as part payment for other goods,
wares and merchandise, except to the extent that the resale price
exceeds the trade-in allowance.
B. Refunds, credits, or allowances given by a taxpayer to a purchaser
on account of defects in goods, wares or merchandise sold, or on account
of goods, wares or merchandise returned.
C. Any commissions paid by a broker to another broker on account of
a purchase or sales contract initiated, executed or cleared with such
other broker.
D. Bad debts, where the deduction is also taken in the same year for
Federal Income Taxation purposes.
E. Taxes collected as agent for the United States of America, Commonwealth
of Pennsylvania or the Borough of Fountain Hill.
5. Partial Exemptions — where gross or whole volume of business
in its entirety cannot be subjected to the tax imposed by this ordinance
by reason of the provisions of the Constitution of the United States,
or any other provision of law, the Tax Collector under the direction
of the Mayor shall establish rules and regulations and methods of
allocation and evaluation so that only that part of the gross or whole
volume of business which is properly attributable and allowable to
doing business in the Borough shall be taxed hereunder.
6. Rate When Same Tax is Imposed by Two Taxing Bodies — if any
person is liable for the same tax on the same subject imposed under
the Local Tax Enabling Act 1965, December 31, Pamphlet Law 1257 and
its amendments, to the Borough and one or more political subdivisions
of the State, then and in that event the tax shall be apportioned
by such percentage as may be agreed upon by such political subdivisions,
but in no event, shall the combined taxes of both subdivisions exceed
a maximum rate of tax as fixed by the said Enabling Act permitting
the imposition of such taxes.
7. Records — the taxpayer, to obtain the foregoing enumerated
exclusions and deductions, shall keep books and records of his business
so as to show clearly, accurately, and separately the amount of such
sales and services as are excluded from the tax and the amounts of
such sales and services which he is entitled to deduct from the gross
volume of business as hereinbefore provided.
[Ord. 323, 12/9/1976, § 4; as reenacted and amended
by Ord. 348, 1/4/1982; and by Ord. 481, 7/1/1991]
1. Every return shall be made upon a form furnished by the Tax Collector.
Every person making a return shall certify the correctness thereof
by affidavit.
2. Every person subject to the tax imposed by this ordinance who commenced
his business on or before January 1 of the full calendar year previous
to the beginning of any tax year shall on or before the 1st Monday
of May of the tax year file with the Tax Collector a return setting
forth his business, business address, and such other information as
may be necessary in arriving at the actual gross amount of business
transacted by him during the preceding calendar year, and the amount
of the tax due.
3. Every person subject to the tax imposed by this ordinance who has
commenced his business less than one full year prior to the beginning
of any license year shall on or before the 1st Monday of May, 1977
file with the Tax Collector a return setting forth his name, his business,
business address, and such other information as may be necessary in
arriving at the actual gross amount of business transacted by him
during the first month of business and the amount of tax due.
4. Every person subject to the tax imposed by this ordinance who commences
business subsequent to the beginning of any tax year shall within
100 days from date of commencing such business file a return with
the Tax Collector setting forth his name, his business and business
address and such information as may be necessary in arriving at the
estimated or actual gross amount of business transacted by him as
calculated under § 403(2-C) hereof and the amount of the
tax due.
5. Every person subject to the payment of the tax imposed by this ordinance
who engages in a business temporary, seasonal or itinerant by its
nature shall at the time application is made for the business privilege
license file a return with the Tax Collector setting forth his name,
his business, his business address and such information as may be
necessary in arriving at the estimated gross amount of business to
be transacted by him as calculated in accordance with § 403(2-D).
6. Any person going out of or ceasing to do business shall within seven
days from the date of ceasing to do business, file a return showing
the actual gross volume of business conducted and done by such person
during that tax year in which said person ceased doing business, and
pay the tax due as computed thereon at the rate herein provided for
at the time of filing said return. If such tax has been previously
paid based upon estimated gross receipts, the taxpayer shall be entitled
to a refund of any excess tax paid for the tax year in which business
was terminated.
7. Payment of Tax and Penalties for Late Payment — The business
privilege tax levied pursuant to this Part shall be due and payable
on the date on which the taxpayer is required to file a return as
set forth above and if the same is not paid on said date, penalty
at the rate of 6% per annum on the amount of said tax, and an additional
interest of 1% per month or fractional part of a month until paid.
8. Receipt — the Tax Collector shall, upon payment to him of the
Business Privilege Tax, give the person paying the same a receipt
therefor.
[Ord. 323, 12/9/1976, § 5; as reenacted and amended
by Ord. 348, 1/4/1982]
After the effective date of this ordinance, any person desiring
to conduct, or to continue to conduct any business, as herein defined,
within the Borough of Fountain Hill shall file with the Tax Collector
an application for a Business Privilege License and shall pay a fee
of $2 for each renewal thereof. The license shall be conspicuously
posted in the place of business for which the such license is issued
and shall remain in effect for the license year or fraction of year
for which said license was issued. In cases where more than one place
of business is conducted, a separate license shall be issued for each
place of business. Any taxpayer who is in default in payment of tax
due hereunder shall be refused a license until such tax is paid in
full.
[Ord. 323, 12/9/1976, § 6; as reenacted and amended
by Ord. 348, 1/4/1982]
Any person who shall conduct, transact or engage in any of the
business subject to the tax imposed by this ordinance, without having
first secured a Business Privilege License for the year, or any person
who shall fail to file a tax return as required by the provisions
of this ordinance, or any person who shall willfully file a false
return, shall, upon summary conviction before a District Justice be
sentenced to pay a fine not to exceed the sum of $300 for any one
offense, recoverable with costs, or imprisonment one day for each
$10 of the balance of unpaid fine and costs.
[Ord. 323, 12/9/1976, § 7; as reenacted and amended
by Ord. 348, 1/4/1982]
Each day on which such person violated the ordinance may be
considered as a separate offense and punishable as such as a fore-provided.
[Ord. 323, 112/9/1976, § 8; as reenacted and amended
by Ord. 348, 1/4/1982]
1. The Tax Collector is charged with the duties of collecting and receiving
the taxes, fines and penalties imposed by this ordinance. It shall
be his duty to keep a record showing the amount received by him from
each person paying the tax and the date of such receipt.
2. The Tax Collector is also empowered to prescribe, adopt and promulgate
rules and regulations relating to any matter pertaining to the administration
and enforcement of this ordinance, including provisions for the examination
and correction of returns, and payments alleged or found to be incorrect,
or as to which an overpayment is to be incorrect, or as to which an
overpayment is claimed, or found to have occurred, and charged with
enforcing the provisions of this ordinance and any rules and/or regulations
promulgated pursuant hereto.
3. In the event the person to be assessed neglects or refuses to make
a return, then in such case the Tax Collector shall assess said person
or persons on such an amount of whole or gross volume of business
as the Tax Collector deems reasonable and appropriate. In all cases
of assessment, the Tax Collector shall give the parties assessed a
notice in which shall be stated the trade, business, occupation or
class, and the amount of the business privilege tax imposed or levied.
4. The taxpayer shall maintain such records and books of account as
will enable him to make a true and accurate return in accordance with
the provisions of the ordinance. Such accounts and records must disclose
in detail the gross receipts and other data pertaining to the taxpayer's
gross volume of business, and must be sufficiently complete to enable
the Tax Collector to verify all transactions. The Tax Collector is
hereby authorized to examine the books, papers and records of any
person or persons subject to or supposed to be subject to the tax
imposed by this ordinance, in order to verify the accuracy of the
return made, or if no return was made, ascertain the tax due.
5. Any person aggrieved by any decision of the Tax Collector shall have
the right to appeal to the Court of Common Pleas, as in other cases.
[Ord. 323, 12/9/1976; as added by Ord. 596, 2/3/1997]
The Tax Collector shall receive such compensation for his services
and expenses as shall be determined by Council from time to time.
[Ord. 323, 12/9/1976, § 9; as reenacted and amended
by Ord. 348, 1/4/1982]
Any information gained by the Tax Collector, or any other official,
agent or employee of the Borough as a result of any returns, investigations,
hearings, or verifications required or authorized by this ordinance,
shall be confidential, except in accordance with proper judicial order
or as otherwise provided by law.
[Ord. 323, 12/9/1976, § 10; as reenacted and amended
by Ord. 348, 1/4/1982]
1. The Tax Collector shall have the power in the name of the Borough
to institute proceedings against any and all persons who violate the
provisions of this ordinance.
2. If for any reason the tax is not paid when due and suit is brought
for the recovery of any such tax, the person liable therefore, shall,
in addition, be liable for the costs of collection and interest and
penalties herein imposed.
[Ord. 323, 12/9/1976, § 11; as reenacted and amended
by Ord. 348, 1/4/1982]
1. Nothing contained in this ordinance shall be construed to empower
the Borough to levy and collect the taxes hereby imposed on any person,
or any business, or any portion of all business not within the taxing
power of the Borough under the Constitution of the United States and
the laws and Constitution of the Commonwealth of Pennsylvania.
2. If the tax, or any portion thereof, imposed upon any person under
the provisions of this ordinance shall be held by any court of competent
power or jurisdiction to be in violation of the Constitution of the
United States or of the Commonwealth of Pennsylvania or any other
provision of the law, the decisions of the court shall not affect
or impair the right to impose the taxes, or the validity of the taxes
so imposed upon other persons as herein provided.
3. The provisions of this ordinance are severable, and if any of its
provisions shall be held illegal, invalid, or unconstitutional, the
decision of the court shall not affect or impair any of the remaining
provisions of this ordinance. It is hereby declared to be the intention
of the Council of the Borough of Fountain Hill that this ordinance
would have been adopted if such illegal, invalid or unconstitutional
provisions had not been included herein.
[Ord. 323, 12/9/1976, § 12; as reenacted and amended
by Ord. 348, 1/4/1982]
This ordinance is enacted pursuant to the authority of the Local
Tax Enabling Act, 1965 December 31, Pamphlet Law 1257, and shall become
effective 30 days after it has been passed by Council and signed by
the Mayor.